Smartkarma AI, Smartkarma

αSK

Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

<ul>
  <li>
<a href="https://smartkarma.com/entities/applovin-corp">AppLovin </a>is a leading mobile technology company operating a comprehensive platform for app developers to market, monetize, and analyze their applications. Its integrated business model, combining a powerful ad-tech software platform with a portfolio of first-party mobile games, creates a significant data advantage.</li>
  <li>The company is experiencing hyper-growth, driven by its advanced AI-powered advertising engine, AXON. Financial performance has been exceptional, with substantial year-over-year increases in revenue and a dramatic improvement in profitability and free cash flow generation.</li>
  <li>Future growth is expected to be fueled by the expansion of its ad platform into non-gaming verticals like e-commerce and Connected TV (CTV), and the global rollout of its self-service ad manager. However, the company faces key risks including intense competition, reliance on the volatile advertising market, and evolving data privacy regulations.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  
AppLovin is a leading mobile technology company operating a comprehensive platform for app developers to market, monetize, and analyze their applications. Its integrated business model, combining a powerful ad-tech software platform with a portfolio of first-party mobile games, creates a significant data advantage.
  The company is experiencing hyper-growth, driven by its advanced AI-powered advertising engine, AXON. Financial performance has been exceptional, with substantial year-over-year increases in revenue and a dramatic improvement in profitability and free cash flow generation.
  Future growth is expected to be fueled by the expansion of its ad platform into non-gaming verticals like e-commerce and Connected TV (CTV), and the global rollout of its self-service ad manager. However, the company faces key risks including intense competition, reliance on the volatile advertising market, and evolving data privacy regulations.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>AppLovin's stock has seen a meteoric rise in 2025, with shares climbing over 400% YTD to reach all-time highs.</li><li>The catalyst?</li><li>A powerful blend of robust advertising revenue growth in mobile gaming, aggressive expansion into the ecommerce and nongaming ad sectors, and strategic moves like the launch of its self-serve AXON Ads Manager.</li></ul>

AppLovin's stock has seen a meteoric rise in 2025, with shares climbing over 400% YTD to reach all-time highs.The catalyst?A powerful blend of robust advertising revenue growth in mobile gaming, aggressive expansion into the ecommerce and nongaming ad sectors, and strategic moves like the launch of its self-serve AXON Ads Manager.

AppLovin Breaks Out Of Gaming—The New Ad Strategy Is Turning Heads (& Printing Cash)

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>There are 3 constituent changes for the <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886:1" rel="noopener">S&amp;P 500 INDEX (SPX INDEX)</a> in September. There are capping changes for the Select Sector indices and the Equal Weight Index too.</li>
<li>The round-trip trade is US$19.6bn with a big chunk from the Equal Weight Index, <a href="https://www.smartkarma.com/entities/technology-select-sector-spdr" target="_blank" data-smartkarma-citation="entities:27543:1" rel="noopener">Technology Select Sector SPDR (XLK US)</a> and <a href="https://www.smartkarma.com/entities/communication-services-select-sector-spdr-fund" target="_blank" data-smartkarma-citation="entities:27534:1" rel="noopener">Communication Services Select Sector SPDR Fund (XLC US)</a>. </li>
<li>The largest flows are expected in <a href="https://www.smartkarma.com/entities/applovin-corp" target="_blank" data-smartkarma-citation="entities:32989:1" rel="noopener">AppLovin (APP)</a>, <a href="https://www.smartkarma.com/entities/robinhood-markets-inc" target="_blank" data-smartkarma-citation="entities:33532:1" rel="noopener">Robinhood Markets (HOOD)</a>, <a href="https://www.smartkarma.com/entities/trade-desk-inc-the" target="_blank" data-smartkarma-citation="entities:26467:1" rel="noopener">Trade Desk (TTD)</a>, <a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA (NVDA)</a>, <a href="https://www.smartkarma.com/entities/apple-inc" target="_blank" data-smartkarma-citation="entities:666:1" rel="noopener">Apple (AAPL)</a>, <a href="https://www.smartkarma.com/entities/alphabet-inc" target="_blank" data-smartkarma-citation="entities:33361:1" rel="noopener">Alphabet (GOOGL)</a>, <a href="https://www.smartkarma.com/entities/microsoft-corp" target="_blank" data-smartkarma-citation="entities:15273:1" rel="noopener">Microsoft (MSFT US)</a>, <a href="https://www.smartkarma.com/entities/exxon-mobil-corp" target="_blank" data-smartkarma-citation="entities:811:1" rel="noopener">Exxon Mobil (XOM)</a> and <a href="https://www.smartkarma.com/entities/chevron-corp" target="_blank" data-smartkarma-citation="entities:11091:1" rel="noopener">Chevron (CVX)</a>.</li>
</ul>


There are 3 constituent changes for the S&amp;P 500 INDEX (SPX INDEX) in September. There are capping changes for the Select Sector indices and the Equal Weight Index too.
The round-trip trade is US$19.6bn with a big chunk from the Equal Weight Index, Technology Select Sector SPDR (XLK US) and Communication Services Select Sector SPDR Fund (XLC US). 
The largest flows are expected in AppLovin (APP), Robinhood Markets (HOOD), Trade Desk (TTD), NVIDIA (NVDA), Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT US), Exxon Mobil (XOM) and Chevron (CVX).


Select Sector Indices and S&P Equal Weight Rebalance: Changes to Drive US$19.6bn Flow

<ul><li>AppLovin has reported strong financial results for the second quarter of 2025, showing robust growth in both revenue and EBITDA.</li><li>The company generated approximately $1.26 billion in revenue, marking a 77% increase year-over-year, and achieved an impressive adjusted EBITDA of $1.02 billion, representing an 81% margin.</li><li>The primary driver of this growth was the company's core gaming advertising business, although there was also notable performance within the e-commerce sector.</li></ul>

AppLovin has reported strong financial results for the second quarter of 2025, showing robust growth in both revenue and EBITDA.The company generated approximately $1.26 billion in revenue, marking a 77% increase year-over-year, and achieved an impressive adjusted EBITDA of $1.02 billion, representing an 81% margin.The primary driver of this growth was the company's core gaming advertising business, although there was also notable performance within the e-commerce sector.

AppLovin Corporation: How AI & Machine Learning Are Redefining Digital Ads!

US-EU Index Rebalances / Quantitative Researcher, ORTEX

Dimitris Ioannidis

US-EU Index Rebalances / Quantitative Researcher

Global Financial Data and Analytics Platform

ORTEX

ORTEX is a global financial data and analytics platform providing real-time securities lending and short interest data, index rebalance data, holdings and insider transactions, trading signals, corporate actions and news,  stock machine learning and factor scores and other analytics. The majority of the data are downloadable and accessible through APIs.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/arm-holdings-inc" target="_blank" data-smartkarma-citation="entities:21816:1" rel="noopener">ARM Holdings (ARM US)</a> has secured a place in the index and is no longer a deletion candidate thanks to the recent methodology changes.</li>
<li>
<a href="https://www.smartkarma.com/entities/applovin-corp" target="_blank" data-smartkarma-citation="entities:32989:1" rel="noopener">AppLovin (APP US)</a> and <a href="https://www.smartkarma.com/entities/microstrategy-inc-cl-a" target="_blank" data-smartkarma-citation="entities:14717:1" rel="noopener">Microstrategy Inc Cl A (MSTR US)</a> are the main candidates for direct addition following their recent stock price surge.</li>
<li>
<a href="https://www.smartkarma.com/entities/dollar-tree-inc" target="_blank" data-smartkarma-citation="entities:10913:1" rel="noopener">Dollar Tree Inc (DLTR US)</a> is the favorable candidate for direct deletion in December with an additional but negligible probability of fast-exit in November.</li>
</ul>



ARM Holdings (ARM US) has secured a place in the index and is no longer a deletion candidate thanks to the recent methodology changes.

AppLovin (APP US) and Microstrategy Inc Cl A (MSTR US) are the main candidates for direct addition following their recent stock price surge.

Dollar Tree Inc (DLTR US) is the favorable candidate for direct deletion in December with an additional but negligible probability of fast-exit in November.


Nasdaq100 December 2024 Forecasts (Part 2): APP & MSTR Poised for Entry; DLTR & SMCI Set for Exit

United States

AppLovin Corporation provides software solutions. The Company offers an end-to-end software that optimizes monetization, and uses machine learning to make data-driven marketing decisions for profitable growth. AppLovin serves clients worldwide.

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AppLovin (APP US)

Primer: AppLovin (APP US) - Dec 2025

AppLovin is a leading mobile technology company operating a comprehensive platform for app developers to market, monetize, and analyze their...

αSK

AppLovin Breaks Out Of Gaming—The New Ad Strategy Is Turning Heads (& Printing Cash)

AppLovin's stock has seen a meteoric rise in 2025, with shares climbing over 400% YTD to reach all-time highs. The catalyst? A powerful blend of...

Baptista Research

Select Sector Indices and S&P Equal Weight Rebalance: Changes to Drive US$19.6bn Flow

Constituent changes to the S&P500 Index and capping changes result in a round-trip trade of US$19.6bn. AppLovin, Robinhood and Emcor will have more...

Brian Freitas

AppLovin Corporation: How AI & Machine Learning Are Redefining Digital Ads!

AppLovin has reported strong financial results for the second quarter of 2025, showing robust growth in both revenue and EBITDA. The company...

Baptista Research

Nasdaq100 December 2024 Forecasts (Part 2): APP & MSTR Poised for Entry; DLTR & SMCI Set for Exit

Fast-Exit has been announced and will be implemented for DLTR at the close of 15 November 2024 where the stock will be deleted from Nasdaq100 and...

Dimitris Ioannidis

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